This is a question all real estate agents would get asked from time to time from a potential client wanting to list there property and for most the alarm bell’s might start ringing.
- Commission fees do vary, most agents don’t charge a flat rate more often it is a fixed or variable percentage of the sale price. Some agents will also negotiate an incentive structure or staggered fee, which means there’s a clear benefit for both the seller and the agent if they get a higher than expected price.
- For example, you might say i’ll pay you an extra .25% if you sell it over $500,000.
- Many vendors still ask agents to discount their fees and, while competition is healthy, a reduction in commission doesn’t always mean you’ll end up making more on the sale price of your property.
- You also need to factor in what the commission fee covers. For instance, a reduction may be offset by reduced marketing, publicity and exposure.
- On top of that, you should also make sure there is still incentive there for the agent to put in the hard work to get you the best price.
- Along with commission, it’s important to discuss the agents marketing costs and cancellation policy (Known as an “Authority period”)
These are just a few things to think about when asking how much you should pay your real estate agent when listing your property.
“Some times cheap can be very expensive!”
- I always remember being told this saying “Some times cheap can be very expensive!”
- You might save on a little commission but the end sale price might be 10’s of thousand less then what you were expecting.
So the best advice is to look for value in your agent, and remember the end goal is to sell your home at the best price in the shortest time and the market is always the only thing that can provide you with this information.
But with a great agent they should be able to help you achieve the maximum price in the shortest time by listing it in the right price range through market knowledge and showing you how to present your property from experience.
In Geraldton we are lucky to have so many great real estate agents so you have plenty to choose from.
All the best The Geraldton Property Inspection Team.
